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NSE market indices rebound by 1.09% on Nestle, Seplat price rallies



…As CBN empowers 1.1m farmers through anchor borrowers’ programme***

The crucial market indicators of the Nigerian Stock Exchange rebounded on Thursday after three consecutive days loss following Nestle and Seplat price rallies, inching market capitalisation by N145 billion or 1.09 per cent, to close at N13.426 trillion against N13.281 trillion recorded on Wednesday.

Similarly, the All-Share Index grew by 296.80 points or 1.90 per cent to close at 27,579.85 compared with 27,283.05 achieved on Wednesday.

The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Nestle Nigeria, Seplat, Total, Access Bank and Eterna.

Analysts at Afrinvest Limited stated that “In the absence of any major stimulus, we expect a bearish performance for the rest of the week.

“Nonetheless, we see opportunities for bargain hunting in stocks with sound fundamentals.”

The market breadth closed positively with 16 gainers and seven losers.

Nestle, Seplat and Total led the gainers’ table in percentage terms, appreciating by 10 per cent each, to close at N1,336.50, N506 and N110 per share, respectively.

Continental Reinsurance followed with a gain 9.88 per cent to close at N1.89, while Cornerstone Insurance and NEM Insurance appreciated by 9.52 per cent each, to close at 46k and N2.30 per share, respectively.

Conversely, Forte Oil led the losers’ chart with a loss of 6.78 per cent to close at N15.80 per share.

Honeywell came second with a decline of 5.94 per cent to close at 95k, while Custodian and Allied lost 4.76 per cent to close at N6 per share.

Also read:  Downhill: NSE moves 462.31m shares worth N7.92bn in negative trading

Chams declined by 4.17 per cent to close at 23k, while Fidelity Bank shed 1.19 per cent to close at N1.66 per share.

In spite of the growth in market indices, the volume of shares closed lower as investors bought and sold 183.47 million shares worth N2.93 billion traded in 2,576 deals.

This was in contrast with an exchange of 462.31 million shares valued at N7.92 billion achieved in 2,895 deals on Wednesday.

Transactions in the shares of Access Bank topped the activity chart with a total of 67.32 million shares valued at N509.83 million.

Guaranty Trust Bank trailed with 23.16 million shares worth N651.7 million, while Transcorp traded 14.08 million shares valued at N14.29 million.

Lafarge Africa sold 10.43 million shares worth N156.63 million, while FBN Holdings transacted 8.73 million shares valued at N47.94 million.

In the meantime, the Central Bank of Nigeria (CBN) says 1,140,854 farmers have participated in the production of 17 different agricultural products under its Anchor Borrowers Programme (ABP)

The bank’s Director, Corporate Communications Department, Mr. Isaac Okorafor, disclosed this at CBN’s ‘special day’ at Abuja International Trade Fair on Thursday.

He was represented by the Deputy Director in the Corporate Communications Department of the Bank and Head of the Public Relations Division, Mrs. Veronica Aqua, at the event.

Okorafor said the figure was compiled since the inception of the project in 2015 to June 2019.

He said that 255 private groups and 14 state governments had participated in the scheme as at June this year.

The director also disclosed that 1,132,260 jobs along the various agricultural value chains had been created under its Commercial Agricultural Credit Scheme (CACS).

He said the bank commenced the scheme in 2009 to fast-track the development of the agricultural sector.

Okorafor said that the apex bank was aware of the role of the youth group in the overall development of the economy, hence inaugurated the Youth Entrepreneurship Development Programme (YEDP) to facilitate an improved access to finance by young people.

He said that this would help develop their entrepreneurial skills, stimulate job creation through the development of Small and Medium Enterprises among youths to harness entrepreneurial capacity as well as increase the contribution of the non oil sector to GDP.

According to him, CBN has collaborated with the Bankers Committee to institute the Agric-business Small and Medium Enterprises Scheme (AGSMEIS) to create employment opportunities and boost the managerial capacity of agric-businesses.

“The CBN and Bankers Committee equally set up the Creative Industry Financing Initiative (CIFI) to improve access to long-term, low-interest financing by entrepreneurs and investors in the industry.

“The bank did the same thing in Information Technology sub sectors to boost job creation in the country, especially among the youth.

“CBN has intervened in 29 various programmes targeted at the different stakeholder groups,” he said.



FG Threatens To Open Borders for Cement Importation Over Price Hike



Palpable fear has gripped cement manufacturers following the Federal Government’s threat to throw open the nation’s borders for cement importation if the product manufacturers fail to bring down the cost.

The Minister of Housing and Urban Development, Mr Ahmed Dangiwa issued the threat on Tuesday in Abuja at a meeting with Cement and Building Materials Manufacturers.

The meeting was summoned to address the astronomical increase in the cost of cement nationwide.

The minister expressed concerns that in the past couple of months, the country had witnessed a recurring alarming increase in the prices of cement and other building materials.

“Clearly, this is a crisis for housing delivery. An increase in essential building materials means an increase in the prices of houses.

“We are not the only country facing this challenges, many countries are facing the same type of challenges that we’re facing, some even worse than that.

“But, as patriotic citizens, we have to rally round the country when there is crisis, to ensure that we do our best to save the situation,” he said.

The minister added: “Honestly speaking, we have to sit down and look at this critically and know how you should go back and think of it.

“The government stopped importation of cement in other to empower you to produce more and sell cheaper

Bags of cement

“Otherwise the government can open the borders for mass importation of cement, the price will crash, but you will have no business to do”.

Dangiwa said the reasons given by cement manufacturers for the price increase – high cost of gas and manufacturing equipment – were not enough for such astronomical pricing.

He expressed his displeasure at the position of  Cement Manufacturer Association of Nigeria (CEMAN) that the association “does not interfer with the pricing of cement”.

He said the association should not just fold  its arms when things were going wrong.

“One person cannot be selling at N3500 per bag and another selling at N7000 per bag and you cannot call them to order.

“The association is expected to monitor price control, otherwise the association has no need to exist,” he said.

Earlier, Mr Salako James, Executive Secretary, CEMAN, said the housing policy of the administration of President Bola  Tinubu was laudable and every responsible Nigerian has to key into it.

He, however, identified some areas of concern and appealed to the government to look into them to tackle the issue of cement pricing.

Salako identified the challenges of gas supply to heavy users like the cement industry and urged the government to create a window whereby gas will be bought with Naira instead of dollar.

He also complained about the distribution channel, stressing tha there was a great difference between the price from the manufacturers and the market price.

He, therefore called for government intervention to help stabilise the situation and bring sanity to the economy.

At the end of the meeting, the minister directed that a committee should be constituted to review the situation and come out with implementable resolutions that would benefit the common Nigerian.

The three major cement producers, Dangote Plc, BUA Plc, and Lafarge Plc were represented as well as other industry stakeholders.

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Cement Price Can Be Lower Than FG, Manufacturers’ Projection — Association 



…Warns that high price could lead to corner-cutting and building collapse

The National Association of Block Moulders of Nigeria (NABMON) says the agreement between the Federal Government and three major cement manufacturers that a 50kg bag of cement, for now, is not supposed to sell for more than N7,000 to N8,000 is faulty.

The National President, Mr Adesegun Banjoko, said this on Tuesday in Lagos.

Recall that the parties, at a meeting on Monday, said that the ideal price of  a 50kg bag of cement for now should be between ₦7,000.00 and ₦8,000.00 depending on location.

They agreed that the current higher prices of cement in parts of the country were abnormal.

The main manufacturers of cement in the country are Dangote Plc, BUA Plc and Lafarge Plc.

According to Banjoko, there is no reason for the price of cement to be sold even at the projected prices, since limestone, which is a key ingredient, is readily available in Nigeria.

He expressed fears that the high price would lead to corner-cutting and building collapse.

The NABMON president expressed the belief that the government and manufacturers could do better and offer lower prices.

Bags of cements

He suggested a reduction or elimination of customs duties on other imported materials used in cement production, adding that this would incentivise manufacturers to lower their prices.

He, therefore, proposed a target price of ₦3,500 to ₦5,000 per bag.

Banjoko said, “There are three issues that make me disagree with the government and the main manufacturers.

“First, limestone is sourced in Nigeria; agreed they have some few other materials they bring in from abroad.

“But if the government is really concerned about life and property lost to building collapse, they should either remove custom duties on such items or reduce them by half to encourage the manufacturers to come down to between N3, 500 and N5, 000.”

He also advised the government to temporarily halt road construction projects that use cement.

Banjoko said that this would free up available cement for vital projects and potentially reduce demand, leading to lower prices.

The NABMON president warned that the high price of cement had added to the existing tensions in the country.

He urged the government to act cautiously with essential commodities like cement, emphasising its impact on public well-being.

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NGX: Bullish Sentiment Persists, Investors Gain N329bn



Stock Market Gains N18bn; FTN Cocoa Processors, Prestige Assurance lead Losers’ Chart 

…Unilever Nigeria Plc, Julius Berger lead Losers’ table 

Bullish sentiment persisted on Thursday at the Nigerian Exchange Ltd. (NGX) equity market, as the market indices rose by 0.58 percent.

Specifically, investors gained N329 billion or 0.58 percent, as the market capitalisation closed at N56.961 trillion, as against N56.632 trillion recorded on Wednesday.

The All-Share Index also appreciated by 0.58 percent or 601.72 points to settle at 104,100, compared to 103,498.28 posted in the previous session.

As a result, the Year-To-Date (YTD) return rose to 39.22 percent.

Continuous buy interests in the shares of BUA Cement, BUAFoods, and Geregu kept the market in the positive terrain.

A total of 284.49 million shares valued at N6.91 billion were exchanged in 8,168 deals, as against 426.86 million shares valued at N12.11 billion exchanged in 8,654 deals.

However, analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 42.89 percent.

Guaranty Trust Holding Company(GTCO) led the activity table in volume and value with the trade of 56.61 million shares worth N2.22 billion.

Transcorp followed with 33.17 million shares valued at N418.31 million, while United Bank of Africa(UBA) traded 18.38 million shares worth N442.96 million.

Also, Mutual Benefits Assurance sold 16.76 shares valued at N11.48 million and AXA Mansard traded 12.51 million shares worth N75.57 million.

On the gainers’ table, University Press Ltd.(UPL) led in percentage terms of 9.96 percent to close at N2.87, followed by Juli Plc by 9.84 percent to close at N1.34 per share.

Mutual Benefits gained 9.38 percent to close at 70k, Daar Communications rose by 8.82 percent to close at 74k, while Honeywell Flour garnered 7.50 percent to close at N4.30 per share.

Stock Market Gains N18bn; FTN Cocoa Processors, Prestige Assurance lead Losers’ Chart 

Conversely, Unilever Nigeria Plc led the losers’ table by 9.80 percent to close at N16.10, Julius Berger lost 9.64 percent to close at N50.60, while Morison Industries Plc shed 9.60 percent to close at N2.23 per share.

May & Baker Nigeria Plc depreciated by 6.52 percent to close at N6.45 and National Salt Company of Nigeria (NASCON) dropped 5.37 percent to close at N59.04 per share.

Market breadth closed negative with 26 declining stocks outnumbering 23 advancing ones.

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